Debt Recovery for Recruitment Agencies

Our recruitment agency clients are often faced with the situation where an agreed fee for the recruitment of an employee does not materialise. We work hard to recover the monies due without damaging the all-important client relationships and professional reputation of the agency.

Ways in which we can help recruitment agencies with debt recovery

Non-payment of agreed recruitment fees on time or at all

We can help to recover the fees payable after successful candidate placement with a client and has served their qualifying period. Sometimes we find that it is simply the client trying to delay payments, and often a letter from a solicitor prompts swift payment, but if they are determined not to pay the invoice for whatever reason, our efficient debt recovery process kicks in and will pursue them for full payment of your invoices.

Back door hires

An increasing problem is when a candidate put forward to a client is taken on by them, but without the knowledge of the agency. This can cause serious issues and of course effectively diverts fees that are due to the agent.

This may not be a straightforward debt recovery issue – as the client will need to prove that they recruited the candidate without the help of the agency. Our Civil Litigation team will be able to advise on how to approach the client and what actions could be taken depending on their response.

To combat this, recruiters should always make clear that they are making the introduction of the candidate to the client, and if possible, document the introduction, including dates and times. This will all be useful information should the matter escalate and such evidence be required.

Change of job roles and salary

Sometimes our clients are faced with a client who takes on a candidate, but does so at a reduced salary or for a different role. Again the paper trail is vital in these circumstances. Recruitment agencies should document salaries and job roles at the earliest opportunity (including the fee calculation if based on salary) and ensure that the client accepts this. If disputes occur, the ‘paper trail’ will be vital and compelling evidence to help the agencies case.

Why use a solicitor to manage your outstanding recruitment agency debts?

It shows your debtors that you mean business. Often a Solicitors Demand Letter will prompt payment or a discussion about settlement of an outstanding debt.
It releases the you to concentrate of what you do best – placing the right candidates with the right clients.
A solicitor is able to take matters further should the client not be forthcoming with payment – not all debt recovery agencies can do this.